SEC Chairman Gary Gensler says that the crypto market is open to manipulation, and this leaves the investors vulnerable. This is why Gary is focusing on bringing better investor protection to the market. He also thinks that the market is full of scams. In fact, investors aren’t able to get accurate or complete information on various tokens in trading and lending platforms. This means that tricking people into buying scam coins and bad projects isn’t a big deal.
Crypto market regulation
Gary Gensler, the SEC Chairman, is asking for better investor protection in the crypto markets. This is necessary because pro investors might know everything about cryptocurrencies, but for someone who is just starting, it will be a mess. The protection is also very necessary for the protection of investors from scams and other wrong activities. I think this is a big and much-needed step from the perspective of an investor.
Gary Gensler is not a Bitcoin fan, but he does acknowledge the fact that Satoshi’s innovation was real. He also says that Bitcoin could continue to change and advance the fields of finance and money. All this is good, but until the industry is filtered from scams and illicit activities, it won’t be appreciated by everyone. Considering the current size of the crypto markets, it is necessary that proper laws and regulations are implemented.
The manipulation side
We all know that crypto markets are often manipulated by whales that pump and dump the prices based on their merit. Currently, there are a lot of centralized and decentralized exchanges where investors are buying, selling, and trading crypto. This is why there are a lot of gaps in investor protection says, Gary Gensler. And because of this, there is a lot of opportunities for market manipulation. Then there is the securities vs. coins debate which is the reason for the lawsuit between XRP and the SEC. To make things easier for innovators, the SEC also said that token issuers and platform regulators could come and talk to the staff at the SEC.
What are your thoughts as the SEC chairman says that the crypto market is open to manipulation? And do you think that regulations will stop this? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.